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File #: 2020-0112   
Type: Ordinance Status: Consent Agenda
File created: 4/6/2020 In control: City Council
On agenda: 4/23/2020 Final action:
Title: Consider an ordinance authorizing the issuance of City of Round Rock, Texas Limited Tax Note, Series 2020; levying an Ad Valorem Tax in support of the Note; awarding the sale of the Note; and authorizing other matters related to the issuance of the Note. (First Reading)(Second Reading Not Required)
Attachments: 1. Ordinance

Title

Consider an ordinance authorizing the issuance of City of Round Rock, Texas Limited Tax Note, Series 2020; levying an Ad Valorem Tax in support of the Note; awarding the sale of the Note; and authorizing other matters related to the issuance of the Note. (First Reading)(Second Reading Not Required)

 

Body

This item will authorize Limited Tax Note of the City of Round Rock, Texas to be issued and delivered in the aggregate principal amount or approximately $4,500,000 for the purpose of purchasing City vehicles and paying the costs of issuing the note.

Each year, the City acquires a portion of its heavy equipment and vehicles through a tax-exempt leasing program.  This year, due to circumstances in the market resulting from the novel coronavirus (COVID-19), the City will be using a limited tax note for the funding of this equipment.

A limited tax note is a note issued under Chapter 1431 of the Texas Government Code payable from ad valorem taxes, within the limits set by state law, which can have a maturity of up to seven years if issued for the construction of public works or the purchase of materials, supplies, equipment, machinery, buildings, lands, or rights-of-way for the City's authorized needs and purposes.